India Smartphone Market Shifts Toward Premium Devices

India's smartphone market is shifting toward premiumization, with overall market value increasing by 5% despite a decline in total sales volumes. This growth is driven by existing users upgrading to more expensive devices, a trend that has expanded from metropolitan hubs into tier-2 and tier-3 cities.

Counterpoint Research projects a 20% decline in the budget segment for devices priced under Rs 10,000, citing high component and memory costs that have pressured pricing. This shift has led to a shrinking active consumer pool, causing some buyers to defer discretionary upgrades.

Demand remains steady for premium devices, including foldables priced above Rs 1 lakh, particularly among users who upgrade every 12 to 24 months. To maintain momentum, manufacturers and retailers are relying more heavily on buyback programs, device trade-ins, and financing options. Servify reported a 50% increase in trade-in volumes during October and November, while high-end models are seeing higher attachment rates for protection plans.